The Christchurch Star PUBLISHED BY New Zealand Newspapers Ltd. THURSDAY, OCTOBER 1, 1931. POUNDS AND DOLLARS.

Star (Christchurch), Volume XLIV, Issue 233, 1 October 1931, Page 8

The Christchurch Star PUBLISHED BY New Zealand Newspapers Ltd. THURSDAY, OCTOBER 1, 1931. POUNDS AND DOLLARS.

'T'HE RAPID RISE in British industrial stocks, following the suspension of the gold standard, indicates that investors anticipate a period of increased trade. That their faith is well founded becomes obvious if the results of the change arc examined, for the value of sterling has fallen sharply in terms of dollars and francs. Reduced to plain terms of trade this means that at the present time Britain is a profitable country to buy in, but an unprofitable one to sell to, for if a dollar is now worth five shillings and eightpenee where previously it was worth only four shillings and twopence, it stands to reason that more goods can now be purchased for a dollar. Expressed in terms of percentages, this is equivalent to a reduction of over 30 per cent to the American purchaser, and should result in an increased demand. On the other hand, the British purchaser of American goods is placed at a disadvantage, for where previously he could get a dollar’s worth of goods for four shillings and twopence, he now has to pay five shillings and eightpenee for the same amount of goods. As a result imports will shrink and exports increase, and a favourable balance of trade may soon emerge. NO MAGIC WAND. A NOTE OF CAUTION should -*■ be sounded regarding the hope of an immediate lightening of the Dominion’s interest burden as a result of Britain’s departure from the gold standard. That relief may be the outcome of the change is undoubtedly true, but it will come from indirect causes, and not as a direct result of the depreciation of sterling. It must be remembered that however much the dollar and pound may fluctuate, New Zealand’s currency is one with Britain’s, and the Dominion will not be immediately affected. But it is almost certain that prices, particularly of those raw materials and foodstuffs which constitute our exports, will rise as a result of the change, and we wall receive a bigger income out of which to pay our interest debt. In other words, a much decreased quantity of our exports will meet the same amount of interest. A SOUND SUGGESTION. ATEGETABLE GROWING on the ’ smaller city reserves is a work into which the unemployed could put their energies in the knowledge that they were doing the best sort of productive work. For there is not much incentive to real toil in clipping grass and wasting a good deal of time over what is practically nominal work. This is a scheme which has the added virtue of teaching men the possibilities of vegetable culture, and encouraging them to turn their thoughts to the land when the depression lifts. The question of competition with private growers, which the Mayor seems to fear may be raised as an objection, really does not enter into the matter, but the unemployment committee, if it so wished, would have as much right to sell as any other producer. The main thing, however, is that the men will be producing food, and that they will be able to appreciate the results of their labours. THE WORLD’S SPORTS FIELD. Ak MERICA, ever on the look-out for new hunting grounds for her army of wealthy sportsmen, is showing increased interest in New Zealand, and a comprehensive questionnaire on the sporting possibilities of the Dominion, from the point of view of a big game hunter or fisherman, has just been filled in by the Tourist Department. An outstanding feature of the answers given to the questions is that, in Canterbury, practically every kind of sport can be obtained, with the exception of deep-sea fishing and wapiti hunting. In Canterbury, too, all the shooting and fishing areas can be reached in a day’s journey from Christchurch.